FMI’ Analyst view: Top Trends Driving Advanced Packaging Sales Worldwide, and How the Business is Expected to Hit a Valuation of US$ 61 Billion by 2033?

The global advanced packaging market is anticipated to exhibit considerable growth at a CAGR of 7.2% in the forecast period between 2023 and 2033. The market is set to be valued at US$ 30.5 billion in 2023. A valuation of US$ 61.3 billion is expected for the global market by 2033.

Due to high demand from a variety of industries within the semiconductor sector, integrated circuit packaging has undergone continual change in terms of product attributes, integration, and energy efficiency.

Flip-chip and wafer-level packaging technologies have seen steady expansion over the years. This growth is attributed to their widespread use, particularly in high-end smartphones and tablets that must adhere to strict space and power management specifications.

Main purpose of the redistribution method was to enable fan-in area array packaging when just a small number of chips were required for the array. Since then, various innovative packaging technologies such as through-silicon via (TSV)-based interposers, wafer-level packaging, chip stacks, and fan-out packaging have all benefited greatly from this methodology.

Fan-out wafer-level packaging (FOWLP), which aims to fulfil the escalating demand for consumer electronics devices, has become a promising technology. Specific features of this type of packaging such as substrate-less packaging and low thermal resistance have made it immensely popular worldwide.

Importantly, it enables incredible performance thanks to its thin-film metallization-based direct integrated circuit connection and short interconnects. It does not make use of standard wire bonding or flip-chip bumps. It also has mild parasitic effects.

Fan-out wafer-level packaging is one of the most prominent packaging innovations in the microelectronics sector. Large substrate formats are being addressed with multiple technological developments for heterogeneous integration with the aid of this packaging.

It incorporates multiple die packaging, package-on-package approaches, passive component integration in packages & redistribution layers. As a result, it is ideal for squeezing in a super capacitor for energy storage along with a piezo-based harvester and power control unit to create a highly miniaturized energy harvester system.

Top Trends Pushing Sales of Advanced Packaging Worldwide

· Miniaturization of Electronics Devices to Augur Well by 2033

As compared to traditional semiconductor packaging, advanced packaging is gaining immense popularity across the globe. Miniaturization of electronics devices is helping advanced packaging sales to escalate worldwide.

High adoption of micro-electromechanical systems (MEMS) is further set to push sales of embedded die packaging solutions. Although the technology is not new, it has been specialized for niche uses owing to its high cost and limited yield. But, it has enormous potential for growth in the forecast period. Investments in the technology may increase as a result of developments in Bluetooth and radio frequency modules, as well as emergence of WiFi-6.

Country-wise Insights

Why is the USA Showcasing Exponential Sales of Advanced Packaging Solutions?

Key Players in the USA to Expand their Advanced Packaging Solutions Manufacturing Capacities

The USA advanced packaging market is expected to reach a valuation of US$ 9.9 billion by 2033. It is anticipated to exhibit 6.6% CAGR from 2023 to 2033. Key players in the USA are setting up fabrication facilities in the country for research and development activities.

They are striving to come up with advanced packaging technologies such as flip chip scale package, flip chip ball grid array, and fan-out wafer-level packaging. For instance, in May 2021, Intel Corporation announced that it invested US$ 3.5 billion in New Mexico in order to work on advanced packaging technologies and advanced packaging.

Intel also developed Foveros, which is its breakthrough 3D technology. This technology will provide the company with increased computing performance. Such advancements in the USA are projected to create new growth opportunities for advanced packaging manufacturers.

How are the United Kingdom-based Advanced Packaging Companies Faring?

Demand for Advanced Box and Packaging Solutions to Boom in the United Kingdom with Presence of Key Companies:

The United Kingdom advanced packaging market is expected to be valued at US$ 1.7 billion by 2033. Between 2023 and 2033, the country is set to showcase a CAGR of 5.6%, says Future Market Insights. It is likely to create an incremental opportunity of about US$ 712.8 million throughout the assessment period.

Key companies based in the United Kingdom are estimated to develop new technologies to attract a large client base. In June 2019, for instance, WHP Engineering was given the task of building cleanrooms in Oxfordshire (United Kingdom) by Satellite Applications Catapult. WHP will work on the contract to expand a top-notch satellite manufacturing facility that aids the country’s space sector.

WHP’s solution entails the delivery of an ISO Class 7 compliant cleanroom. It was developed by using 3D Building Information Modelling (BIM) modelling techniques to help finalize DISC’s need for a wide range of facilities. It will be utilized to finalize process & key utilities systems, machinery components, and architecture.

Why are Sales of Advanced Packaging Solutions Skyrocketing in China?

Semiconductor Manufacturers in China to Look for Advanced Flexible Packaging:

China advanced packaging industry is expected to be worth US$ 15.5 billion by 2033. It is estimated to witness a significant CAGR of around 8.7% between 2023 and 2033. As per Future Market Insights, the country exhibited a CAGR of 10.3% from 2018 to 2022.

Given the rising demand from data centres and artificial intelligence, manufacturers in China are concentrating on expanding their clientele across North America. Presence of various semiconductor manufacturers in the country is another crucial factor that would augment advanced packaging demand. To meet the high demand from fabless vendors, the country’s pure-play manufacturers are expanding their production capacity.

Will South Korea Exhibit Elevating Demand for Advanced Packaging Solutions?

High Demand for Fast-charging Integrated Circuits in South Korea to Push Sales of Electronic Chips:

In 2033, South Korea advanced packaging market is expected to be worth US$ 3.7 billion. The country is set to create an incremental opportunity of around US$ 1.9 billion in the next ten years, finds Future Market Insights.

South Korea-based companies are expected to draw a large client base by developing new technologies. In February 2020, for instance, HANA Micron, a semiconductor company headquartered in South Korea, used the wafer-level packaging process to expand the thickness of wiring by four times in a chip. The company aims to use this process to make fast-charging integrated circuits.

These insights are based on a report Advanced Packaging Market by Future Market Insights.
















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